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The Nigerian government has handed over US$419.50bn to the Ministry of works for the proceeds of the third Sukuk Bond that it recently raised
The Sukuk Bond, third in a row, was oversubscribed by 446 per cent.
The proceeds will be used for the construction and rehabilitation of 44 roads in the six geopolitical zones in the country.
Zainab Ahmed, minister of finance, budget and economic planning, said that allocating the proceeds of the bond to road construction and rehabilitation demonstrated that the Nigerian government is prioritising the development of roads, rail, power, agriculture and infrastructure projects.
The Debt Management Office stated that the demand for the bond came from a wide range of investors including ethical funds, insurance companies, and retail investors.
According to the DMO, the benefits of the Sukuk Bond in the financing of roads include improved safety on the roads, faster travel time, access to markets for farm produce and opening up parts of the country for development, job creation and increase level of activity for service providers many of whom are small business.
The DMO will continue to raise funds through the Sukuk to support improvement in infrastructure and development of the domestic capital market.